Buying a house for the first time is a big step that involves a few risks. Regardless of how easy the process may seem, it’s advisable to sit down and think hard about what it will be like three or five years down the road. Although it’s impossible to be prepared for everything, it helps to keep the following in mind before buying a house.
3 Things You Should Know Before Buying a House
1. Credit Score
If you want the best
mortgage rate, you need a good credit score. Lenders will look at your debt-to-income ratio to make sure you don’t exceed the maximum. The most competitive interest rates are only given to buyers with credit scores above 700, so review your financial situation before you check out open houses.
2. Down Payment
The sooner you start saving for your future home, the easier it gets. Your down payment will help you with your mortgage payments in the long run. You should put away at least 5% of your dream home’s price. But if you want to avoid paying for private mortgage insurance, save 20% or more of its value.
3. Financing Options
Different institutions offer different mortgage rates. Some allow you to pre-pay while some don’t. Before buying a house, it’s advisable to shop around and explore your loan options from various firms. If you want to get the best mortgage rates, don’t just go with the first one you encounter.
If you’re planning on buying a house, Kamehameha Realty in Aiea, HI, can help. Having been in the business for more than 30 years, they can provide the expert guidance you need. They specialize in both residential and commercial real estate and offer full-scale property management services. Call (808) 488-2477 to discuss your needs or visit their website to check out homes for sale.